SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): May 28, 2003
TRANSOCEAN INC.
(Exact name of registrant as specified in its charter)
CAYMAN ISLANDS 333-75899 66-0587307
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
4 GREENWAY PLAZA
HOUSTON, TEXAS 77046
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 232-7500
ITEM 9. Regulation FD Disclosure.
The following information is furnished under Item 12 of Form 8-K (Results of
Operations and Financial Condition) in accordance with Securities and Exchange
Commission Release No. 33-8216.
In the following tables, we set forth our total operating and maintenance
expense and total cash operating costs for our International and U.S. Floater
Contract Drilling Services and Gulf of Mexico Shallow and Inland Water
business segments for the first quarter of 2003 and the fourth quarter of 2002.
We also set forth the average cash operating costs and the range of cash
operating costs per day within our International and U.S. Floater Contract
Drilling Services and Gulf of Mexico Shallow and Inland Water business
segments. The most directly comparable GAAP financial measure to cash
operating costs, total operating and maintenance expense, and information
reconciling the GAAP and non-GAAP measures are also included below in the table
labeled "Transocean Inc. Reconciliation of Costs and Expenses to Cash Operating
Costs." We utilize cash operating costs as an additional rig performance measure
and to identify variances between periods and comparable rig types. We believe
investors will utilize operating cost information as additional performance
measures.
Operating and Maintenance Expense
1st Quarter 4th Quarter
2003 2002
-------------- ---------------
International and U.S. (In millions)
Floater Contract Drilling Segment
Cash Operating Costs(1)
5th-Generation Floaters $ 62.6 $ 60.8
Other Deepwater Floaters 60.1 62.8
Mid-water Floaters 64.7 78.6
Non-U.S. Jackups 48.9 57.5
Other Rigs 6.5 18.7
-------------- ---------------
Total Cash Operating Costs 242.8 278.4
Costs Deferred During Quarter (23.8) (26.1)
Amortization of Deferred Costs 27.8 16.5
Client Reimbursable Revenues 21.6 -
Local & Indirect Overhead 47.1 48.0
-------------- ---------------
Total Operating & Maintenance Expense $ 315.5 $ 316.8
Gulf of Mexico Shallow and Inland Water Segment
Cash Operating Costs
Jackups & Submersibles $ 22.8 $ 22.6
Barge Rigs 18.4 15.7
Other Rigs 5.4 5.6
-------------- ---------------
Total Cash Operating Costs 46.6 43.9
Costs Deferred During Quarter - -
Amortization of Deferred costs - -
Client Reimbursable Revenues 4.8 -
Local & Indirect Overhead 7.2 5.8
-------------- ---------------
Total Operating & Maintenance Expense $ 58.6 $ 49.7
---------------
(1) Cash operating costs are operating and maintenance expenses excluding
deferred costs and the effects of related amortization, client
reimbursable costs and local and indirect overhead costs.
2
The average cash operating costs and the range of cash operating costs per day
for the rigs within our fleet categories comprising our International and U.S.
Floater Contract Drilling business segment are as follows (dollar amounts in
thousands):
Number of Average Per Range
Operating Rigs Day Per Day
Fifth Generation Floaters
1st Quarter 2003
Operating 11 $63.2 $50.5 - 86.7
Stacked 0 -- --
4th Quarter 2002
Operating 11 $60.0 $52.5 - 71.3
Stacked 0 -- --
Other Deepwater Floaters
1st Quarter 2003
Operating 14 $44.8 $26.9 - 77.9
Stacked 1 $14.9 $14.9
4th Quarter 2002
Operating 15 $45.5 $27.5 - 78.8
Stacked 0 -- --
Mid-Water Floaters
1st Quarter 2003
Operating 19 $34.3 $21.7 - 82.8
Stacked 12 $5.7 $1.1 - 15.5
4th Quarter 2002
Operating 20 $37.6 $19.0 - 92.5
Stacked 11 $9.3 $2.1 - 25.8
Non-U.S. Jackups
1st Quarter 2003
Operating 25 $19.2 $12.2 - 51.9
Stacked 1 $1.0 $1.0
4th Quarter 2002
Operating 25 $21.9 $7.8 - 41.5
Stacked 2 $1.2 $0.9 - 1.6
Other Rigs
1st Quarter 2003
Operating 4 $12.1 $9.0 - 28.2
Stacked 8 $2.9 $0.1 - 11.8
4th Quarter 2002
Operating 6 $22.5 $8.7 - 22.5
Stacked 6 $2.3 $0.1 - 5.0
3
The average cash operating costs and the range of cash operating costs per day
for the rigs within our fleet categories comprising our Gulf of Mexico Shallow
and Inland Water business segment are as follows (dollar amounts in thousands):
Number of Average Per Range
Operating Rigs Day Per Day
Jackups & Submersibles
1st Quarter 2003
Operating 11 $13.8 $12.8 - 20.9
Stacked 19 $3.0 $0.4 - 18.8
4th Quarter 2002
Operating 10 $17.5 $14.5 - 30.6
Stacked 21 $3.4 $0.1 - 14.9
Barge Rigs
1st Quarter 2003
Operating 16 $9.6 $8.0 - 15.0
Stacked 15 $3.4 $0.4 - 10.1
4th Quarter 2002
Operating 15 $8.5 $8.3 - 13.8
Stacked 16 $2.7 $0.1 - 9.2
Other Rigs
1st Quarter 2003
Operating 5 $10.0 $5.4 - 15.6
Stacked 9 $1.1 $0.2 - 3.2
4th Quarter 2002
Operating 3 $11.4 $9.0 - 16.3
Stacked 11 $2.4 $0.4 - 9.1
4
TRANSOCEAN INC.
RECONCILIATION OF COSTS AND EXPENSES TO
CASH OPERATING COSTS
THREE MONTHS ENDED
----------------------------------------------
DECEMBER 31, MARCH 31,
2002 2003
--------------------- --------------------
(IN US$ MILLIONS)
OPERATING AND MAINTENANCE
International and U.S. Floater Contract
Drilling Services $ 316.8 $ 315.5
Gulf of Mexico Shallow and Inland Water 49.7 58.6
--------------------- --------------------
366.5 374.1
LESS:
LOCAL AND INDIRECT OVERHEAD EXPENSES
International and U.S. Floater Contract
Drilling Services (48.0) (47.1)
Gulf of Mexico Shallow and Inland Water (5.8) (7.2)
--------------------- --------------------
(53.8) (54.3)
AMORTIZATION OF DEFERRED COSTS
International and U.S. Floater Contract
Drilling Services (16.5) (27.8)
CLIENT REIMBURSABLE REVENUES
International and U.S. Floater Contract
Drilling Services - (21.6)
Gulf of Mexico Shallow and Inland Water - (4.8)
--------------------- --------------------
- (26.4)
PLUS: DEFERRED COSTS AND EXPENSES
International and U.S. Floater Contract
Drilling Services 26.1 23.8
--------------------- --------------------
CASH OPERATING COSTS $ 322.3 $ 289.4
===================== ====================
CASH OPERATING COSTS BY SEGMENT
International and U.S. Floater Contract
Drilling Services $ 278.4 $ 242.8
Gulf of Mexico Shallow and Inland Water 43.9 46.6
--------------------- --------------------
$ 322.3 $ 289.4
===================== ====================
The information furnished pursuant to this Item 9 shall not be deemed to be
"filed" for the purposes of Section 18 of the Securities Exchange Act of 1934,
nor will it be incorporated by reference into any registration statement filed
by Transocean Inc. under the Securities Act of 1933, as amended, unless
specifically identified therein as being incorporated therein by reference. The
furnishing of the information in this report is not intended to, and does not,
constitute a determination or admission by Transocean Inc., that the
information in this report is material or complete, or that investors should
consider this information before making an investment decision with respect to
any security of Transocean Inc.
5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
TRANSOCEAN INC.
Date: May 28, 2003 By: /s/ ERIC B. BROWN
---------------------------------------
Eric B. Brown
Senior Vice President, General
Counsel and Corporate Secretary
6